Watchdog gives M&S the all clear

THE Financial Services Authority has closed its investigation of irregular dealings in Marks & Spencer, finding nothing 'untoward' in the movement of M&S shares ahead of Philip Green's informal takeover bid in May.

The regulator launched its probe in June, after the shares rose sharply ahead of Green's expression of interest in the retailer on May 27.

M&S chief executive Stuart Rose was one of those buyers, picking up 100,000 shares on May 7 after a conversation with Green who wanted to arrange a May 12 meeting.

Rose says the exchange had nothing to do with a putative bid. The FSA later cleared Rose of any wrongdoing. The regulator also cleared Rose's pal Michael Spencer, head of City broker ICAP, who profited handsomely from an M&S trade executed a day after a meeting with Rose.

'The FSA's investigation into this matter is now closed,' said the City watchdog in a statement. M&S would not comment.